Bill Text: NY A01674 | 2019-2020 | General Assembly | Introduced


Bill Title: Relates to matching financing; relates to the New York state campaign finance fund and the abandoned property fund.

Spectrum: Moderate Partisan Bill (Democrat 9-1)

Status: (Introduced) 2019-01-16 - referred to election law [A01674 Detail]

Download: New_York-2019-A01674-Introduced.html


                STATE OF NEW YORK
        ________________________________________________________________________
                                          1674
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 16, 2019
                                       ___________
        Introduced  by  M.  of  A.  ABINANTI,  GALEF, JAFFEE, COLTON, MONTESANO,
          SIMON, THIELE, GOTTFRIED, STECK -- Multi-Sponsored  by  --  M.  of  A.
          EPSTEIN -- read once and referred to the Committee on Election Law
        AN  ACT to amend the election law, in relation to statements of campaign
          receipts, contributions, transfers and expenditures to  and  by  poli-
          tical committees; to amend the election law, in relation to establish-
          ing  a contribution limit for certain contributions to a party commit-
          tee or constituted committee; to amend the election law,  in  relation
          to  public  financing;  to amend the state finance law, in relation to
          the New York state judicial and  district  attorney  campaign  finance
          fund; to amend the tax law, in relation to the New York state judicial
          and  district  attorney  campaign finance fund check-off; to amend the
          election law, in relation to enforcement  proceedings;  and  providing
          for the repeal of such provisions upon expiration thereof
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1.  Subdivision 1 of section 14-102 of the  election  law,  as
     2  amended  by  chapter  8  and as redesignated by chapter 9 of the laws of
     3  1978, is amended to read as follows:
     4    1. The treasurer of every political committee which, or  any  officer,
     5  member  or  agent  of  any  such  committee  who, in connection with any
     6  election, receives or expends any  money  or  other  valuable  thing  or
     7  incurs  any  liability  to pay money or its equivalent shall file state-
     8  ments sworn, or subscribed and bearing a form notice that  false  state-
     9  ments  made  therein are punishable as a class A misdemeanor pursuant to
    10  section 210.45 of the penal law, at the times prescribed by this  [arti-
    11  cle]  title  setting  forth  all  the receipts, contributions to and the
    12  expenditures by and liabilities of the committee, and of  its  officers,
    13  members  and  agents  in  its  behalf. Such statements shall include the
    14  dollar amount of any receipt, contribution  or  transfer,  or  the  fair
    15  market  value  of  any receipt, contribution or transfer, which is other
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD05148-01-9

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     1  than of money, the name and address of the transferor,  contributor,  or
     2  person  from whom received, and if the transferor, contributor or person
     3  is a political committee; the name of and the political unit represented
     4  by  the  committee,  the date of its receipt, the dollar amount of every
     5  expenditure, the name and address of the person to whom it was  made  or
     6  the name of and the political unit represented by the committee to which
     7  it was made and the date thereof, and shall state clearly the purpose of
     8  such expenditure.  Any statement reporting a loan shall have attached to
     9  it  a  copy  of the evidence of indebtedness. Expenditures in sums under
    10  fifty dollars need not be specifically accounted for by  separate  items
    11  in  said statements, and receipts and contributions aggregating not more
    12  than ninety-nine dollars, from any one contributor need not  be  specif-
    13  ically  accounted  for  by  separate  items in said statements, provided
    14  however, that such expenditures, receipts  and  contributions  shall  be
    15  subject  to  the  other  provisions  of section 14-118 of this [article]
    16  title.
    17    § 2. The article heading of article 14 of the election law is  amended
    18  to read as follows:
    19                     CAMPAIGN RECEIPTS AND EXPENDITURES;
    20                              PUBLIC FINANCING
    21    §  3.  Paragraph  b of subdivision 1 of section 14-114 of the election
    22  law, as amended by chapter 659 of the laws of 1994, is amended and a new
    23  paragraph d is added to read as follows:
    24    b. In any other election for party  position  or  for  election  to  a
    25  public  office or for nomination for any such office, no contributor may
    26  make a contribution to any candidate or political committee and no  such
    27  candidate  or  political  committee may accept any contribution from any
    28  contributor, which is in the aggregate amount greater than: (i)  in  the
    29  case  of  any  election  for party position, or for nomination to public
    30  office, the product of the total number of enrolled voters in the candi-
    31  date's party in the district in  which  he  is  a  candidate,  excluding
    32  voters  in  inactive status, multiplied by $.05, and (ii) in the case of
    33  any election for a public office, the product of  the  total  number  of
    34  registered  voters in the district, excluding voters in inactive status,
    35  multiplied by $.05, except in the case of a candidate for supreme  court
    36  justice  or  district attorney not participating in the state's judicial
    37  public campaign financing system defined in title two of  this  article,
    38  multiplied  by  $.03  and  in  the case of a candidate for supreme court
    39  justice or district  attorney  participating  in  the  state's  judicial
    40  public  campaign  financing system defined in title two of this article,
    41  multiplied by $.01, however in the case of a nomination within the  city
    42  of  New  York  for  the office of mayor, public advocate or comptroller,
    43  such amount shall be not less than four thousand dollars nor  more  than
    44  twelve  thousand dollars as increased or decreased by the cost of living
    45  adjustment described in paragraph c of this subdivision; in the case  of
    46  an  election within the city of New York for the office of mayor, public
    47  advocate or comptroller, twenty-five thousand dollars  as  increased  or
    48  decreased  by  the cost of living adjustment described in paragraph c of
    49  this subdivision; in the case of a nomination for  state  senator,  four
    50  thousand dollars as increased or decreased by the cost of living adjust-
    51  ment  described  in  paragraph  c of this subdivision; in the case of an
    52  election for state senator, six thousand two hundred  fifty  dollars  as
    53  increased  or  decreased  by  the cost of living adjustment described in
    54  paragraph c of this subdivision; in the case of  an  election  or  nomi-
    55  nation  for  a  member  of  the assembly, twenty-five hundred dollars as
    56  increased or decreased by the cost of  living  adjustment  described  in

        A. 1674                             3
     1  paragraph  c of this subdivision; but in no event shall any such maximum
     2  exceed fifty thousand dollars or be  less  than  one  thousand  dollars;
     3  provided however, that the maximum amount which may be so contributed or
     4  accepted,  in  the aggregate, from any candidate's child, parent, grand-
     5  parent, brother and sister, and the spouse of any  such  persons,  shall
     6  not  exceed in the case of any election for party position or nomination
     7  for public office an amount equivalent to the number of enrolled  voters
     8  in  the  candidate's  party  in the district in which he is a candidate,
     9  excluding voters in inactive status, multiplied by $.25 and in the  case
    10  of  any election to public office, an amount equivalent to the number of
    11  registered voters in the district, excluding voters in inactive  status,
    12  multiplied by $.25; or twelve hundred fifty dollars, whichever is great-
    13  er, or in the case of a nomination or election of a state senator, twen-
    14  ty  thousand  dollars,  whichever  is greater, or in the case of a nomi-
    15  nation or election of a member of  the  assembly  twelve  thousand  five
    16  hundred  dollars,  whichever  is greater, but in no event shall any such
    17  maximum exceed one hundred thousand dollars.
    18    d. Notwithstanding any  other  contribution  limit  in  this  section,
    19  participating  candidates  as defined in subdivision fourteen of section
    20  14-201 of this article may contribute, out of  their  own  money,  three
    21  times the applicable contribution limit for non-participating candidates
    22  to their own authorized political committee.
    23    § 4. Sections 14-100 through 14-132 of the election law are designated
    24  title I and a new title heading is added to read as follows:
    25                     CAMPAIGN RECEIPTS AND EXPENDITURES
    26    §  5.  Article 14 of the election law is amended by adding a new title
    27  II to read as follows:
    28                                  TITLE II
    29                              PUBLIC FINANCING
    30  Section 14-200. Legislative findings and intent.
    31          14-201. Definitions.
    32          14-202. Reporting requirements.
    33          14-203. Contributions.
    34          14-204. Proof of compliance.
    35          14-205. Eligibility.
    36          14-206. Limits on public financing.
    37          14-207. Payment of public matching funds.
    38          14-208. Use of public matching funds; qualified campaign expend-
    39                      itures.
    40          14-209. Powers and duties of the board.
    41          14-210. Audits and repayments.
    42          14-211. Enforcement  and  penalties  for  violations  and  other
    43                      proceedings.
    44          14-212. Reports.
    45          14-213. Severability.
    46    §  14-200. Legislative findings and intent.  The legislature finds and
    47  determines that the judiciary and prosecutors for the  state  fulfill  a
    48  unique  role in government, substantively distinct from non-judicial and
    49  prosecutorial offices.
    50    The legislature also finds and determines that justices  and  district
    51  attorneys  are  not elected to represent the views of voters, but rather
    52  are elected to uphold the law.

        A. 1674                             4
     1    The legislature additionally finds and determines  that  judicial  and
     2  prosecutorial  impartiality and independence are critical to maintaining
     3  public confidence and the rule of law.
     4    The  legislature  additionally  finds  and  determines that judges and
     5  district attorneys must maintain impartiality and independence  and  the
     6  appearance  of  impartiality  and  independence,  unlike non-judicial or
     7  prosecutorial offices.
     8    The legislature additionally finds and determines that  the  rules  of
     9  judicial  conduct  and  the rules of prosecutorial conduct recognize the
    10  distinct nature of the judicial branch and responsibilities of  prosecu-
    11  tors,  in  contrast  to  the  legislative  and  executive  branches,  by
    12  restricting judges and justices from engaging in various campaign-relat-
    13  ed political activity not imposed on non-judicial offices.
    14    The legislature additionally finds and determines that many state  and
    15  federal  judicial  offices  are  not elected, but rather appointed posi-
    16  tions, due to the nonpolitical nature of the office.
    17    The legislature additionally finds and  determines  that  raising  the
    18  funds  necessary to run for the office of the supreme court, in a manner
    19  that comports with judicial rules of conduct, further distinguishes  the
    20  office  of supreme court from other elective offices and would be appro-
    21  priate to apply to the office of district attorney.
    22    The legislature additionally finds and  determines  that  raising  the
    23  necessary  funds  to run for the office of the supreme court or district
    24  attorney has the potential to  reduce  the  appearance  of  judicial  or
    25  prosecutorial  impartiality and the confidence of those appearing before
    26  the court.
    27    The legislature additionally finds and determines that the  heightened
    28  restrictions  imposed on judicial candidates, and appropriate for candi-
    29  dates for district attorney, necessary  to  maintain  impartiality,  are
    30  furthered  by  a  judicial  and  prosecutorial  public  campaign finance
    31  system.
    32    The legislature additionally finds and determines that a judicial  and
    33  prosecutorial  public  campaign  finance  system  for candidates for the
    34  office of supreme court justice and district attorney reduces the poten-
    35  tial for judicial or prosecutorial partiality or the appearance of judi-
    36  cial or prosecutorial partiality of those appearing before the court.
    37    § 14-201. Definitions.  For the purposes of this title, the  following
    38  terms shall have the following meanings:
    39    1.  The  term  "authorized  political committee" shall mean the single
    40  political committee designated by a candidate pursuant to section 14-202
    41  of this title to receive contributions and make expenditures in  support
    42  of the candidate's campaign.
    43    2. The term "board" shall mean the state board of elections.
    44    3.  The  term "contribution" shall have the same meaning as appears in
    45  subdivision nine of section 14-100 of this article.
    46    4. The term "contributor" shall mean any person or entity that makes a
    47  contribution.
    48    5. The term "covered election" shall mean any general election for the
    49  office of supreme court justice or district attorney.
    50    6. The term "election cycle" shall mean the window period  defined  in
    51  22  NYCRR  Part 100 for the office of supreme court justice and, for the
    52  office of district attorney, any primary or general election  for  nomi-
    53  nation for election or election, to the office of district attorney.
    54    7.  The term "expenditure" shall mean any gift, subscription, advance,
    55  payment, or deposit of money or anything of value, or a contract to make
    56  any gift, subscription, payment, or deposit  of  money  or  anything  of

        A. 1674                             5
     1  value, made in connection with the nomination for election, or election,
     2  of  any  candidate.   Expenditures made by contract are deemed made when
     3  such funds are obligated.
     4    8.  The  term  "fund"  shall mean the New York state judicial campaign
     5  finance fund or the district attorney campaign fund.
     6    9. The term "immediate family" shall mean a spouse, domestic  partner,
     7  child, sibling or parent.
     8    10.  The  term  "intermediary"  shall mean an individual, corporation,
     9  partnership, political committee, employee organization or other  entity
    10  which bundles, causes to be delivered or otherwise delivers any contrib-
    11  ution  from  another  person or entity to a candidate's authorized poli-
    12  tical committee, other than in the  regular  course  of  business  as  a
    13  postal,  delivery  or  messenger  service.    Provided, however, that an
    14  "intermediary" shall not include spouses,  domestic  partners,  parents,
    15  children  or  siblings of the person making such contribution or a staff
    16  member or volunteer of the campaign identified in writing to  the  state
    17  board of elections.
    18    11.  The  term  "item  with  significant intrinsic and enduring value"
    19  shall mean any item, including tickets to an event, that are  valued  at
    20  twenty-five dollars or more.
    21    12. (a) The term "matchable contribution" shall mean a lawful contrib-
    22  ution, contributions or a portion of a contribution or contributions for
    23  any covered elections held in the same election cycle, made by a natural
    24  person  and resident of the district in which the office is to be filled
    25  to a participating candidate's authorized political committee, that  has
    26  been  reported  in  full to the board in accordance with sections 14-102
    27  and 14-104 of this  article  by  the  candidate's  authorized  political
    28  committee  and has been contributed on or before the day of the applica-
    29  ble general election. Any contribution, contributions, or a portion of a
    30  contribution determined to be invalid for matching funds  by  the  board
    31  may not be treated as a matchable contribution for any purpose.
    32    (b) The following contributions are not matchable:
    33    (i) loans;
    34    (ii) in-kind contributions of property, goods, or services;
    35    (iii) contributions in the form of the purchase price paid for an item
    36  with significant intrinsic and enduring value;
    37    (iv) transfers from a party or constituted committee;
    38    (v)  contributions whose source is not itemized as required by section
    39  14-202 of this title;
    40    (vi) contributions gathered during a previous election cycle;
    41    (vii) illegal contributions;
    42    (viii) contributions from minors;
    43    (ix) contributions from vendors for campaigns; and
    44    (x) contributions from lobbyists registered  pursuant  to  subdivision
    45  (a) of section one-c of the legislative law.
    46    13. The term "nonparticipating candidate" shall mean a candidate for a
    47  covered  election  who does not file a written certification in the form
    48  of an affidavit under section 14-205 of this  title  by  the  applicable
    49  deadline.
    50    14.  The  term  "participating candidate" shall mean any candidate for
    51  election to the office of supreme court justice  or  district  attorney,
    52  who  files  a written certification in the form of an affidavit pursuant
    53  to section 14-205 of this title.
    54    15. The term "post-election period" shall mean the six months  follow-
    55  ing an election.

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     1    16.  The  term "qualified campaign expenditure" shall mean an expendi-
     2  ture for which public matching funds may be used.
     3    17.  The  term  "threshold  for  eligibility" shall mean the amount of
     4  matchable contributions that a candidate's authorized political  commit-
     5  tee  must  receive  in  total in order for such candidate to qualify for
     6  voluntary public financing under this title.
     7    18. The term "transfer" shall mean any exchange  of  funds  between  a
     8  party  or  constituted  committee  and  a candidate or any of his or her
     9  authorized political committees.
    10    § 14-202. Reporting requirements.   1. Political  committee  registra-
    11  tion.  Political  committees  as  defined pursuant to subdivision one of
    12  section 14-100 of this article shall  register  with  the  board  before
    13  making any contribution or expenditure.  The board shall publish a cumu-
    14  lative  list  of political committees that have registered, including on
    15  its webpage, and regularly update it.
    16    2. Only one authorized political committee per candidate per  elective
    17  office sought.  Before receiving any contribution or making any expendi-
    18  ture for a covered election, each candidate shall notify the board as to
    19  the existence of his or her authorized political committee that has been
    20  approved  by  such candidate. Each candidate shall have one and only one
    21  authorized political committee per elective office sought. Each  author-
    22  ized  political  committee  shall have a treasurer and is subject to the
    23  restrictions found in section 14-112 of this article.
    24    3. (a) Detailed reporting. In addition to  each  authorized  political
    25  committee  reporting  to  the board every contribution and loan received
    26  and every expenditure made in the time and manner prescribed by sections
    27  14-102, 14-104 and 14-108 of this  article,  each  authorized  political
    28  committee of a candidate intending to participate in the judicial public
    29  financing system shall also submit disclosure reports on March fifteenth
    30  and  May  fifteenth  of  each election year reporting to the board every
    31  contribution and loan received and every expenditure made.  For contrib-
    32  utors who make contributions of  five  hundred  dollars  or  more,  each
    33  authorized political committee shall report to the board the occupation,
    34  and  employer  of  each contributor, lender, and intermediary. The board
    35  shall revise, prepare and post forms  on  its  webpage  that  facilitate
    36  compliance with the requirements of this section.
    37    (b)  Board review. The board shall review each disclosure report filed
    38  and shall inform the treasurer of the authorized political committee  of
    39  relevant  questions  it has concerning: (i) compliance with requirements
    40  of this title and of the rules issued by the board; and (ii)  qualifica-
    41  tion  for receiving public matching funds pursuant to this title. In the
    42  course of this review, it shall give authorized political committees  an
    43  opportunity  to  respond  to  and  correct potential violations and give
    44  candidates an opportunity to address questions it has  concerning  their
    45  matchable contribution claims or other issues concerning eligibility for
    46  receiving  public matching funds pursuant to this title. Upon completion
    47  of the compliance review, nothing in this paragraph shall  preclude  the
    48  chief  enforcement  counsel  from subsequently reviewing such disclosure
    49  reports and taking any action otherwise authorized under this title.
    50    (c) Itemization. Contributions that are not itemized in reports  filed
    51  with the board shall not be matchable.
    52    (d)  Option to file more frequently. Participating candidates may file
    53  reports of contributions as frequently as once a week on Monday so  that
    54  their matching funds may be paid at the earliest allowable date.

        A. 1674                             7
     1    §  14-203. Contributions.   Recipients of funds pursuant to this title
     2  shall be subject to the applicable  contribution  limits  set  forth  in
     3  section 14-114 of this article.
     4    §  14-204.  Proof of compliance. Authorized political committees shall
     5  maintain such  records  of  receipts  and  expenditures  for  a  covered
     6  election  as required by the board. The treasurer of an authorized poli-
     7  tical committee shall obtain and furnish to the board any information it
     8  may request relating to  financial  transactions  or  contributions  and
     9  furnish such documentation and other proof of compliance with this title
    10  as  may be requested. In compliance with section 14-108 of this article,
    11  authorized political committees shall maintain copies  of  such  records
    12  for a period of five years.
    13    §  14-205.  Eligibility.   1. Terms and conditions. To be eligible for
    14  voluntary public financing under this title, a candidate must:
    15    (a) be a candidate in a covered election;
    16    (b) meet all the requirements of law to have his or her  name  on  the
    17  ballot;
    18    (c) in the case of a covered election, be opposed by another candidate
    19  on the ballot who is not a write-in candidate;
    20    (d)  submit  a certification in the form of an affidavit, in such form
    21  as may be prescribed by the board, that sets forth his or her acceptance
    22  of and agreement to  comply  with  the  terms  and  conditions  for  the
    23  provision  of such funds in each covered election and such certification
    24  shall be submitted at least four  months  before  the  election  but  no
    25  earlier  than  nine  months before the nomination pursuant to a schedule
    26  promulgated by the board;
    27    (e) be certified as a participating candidate by the board;
    28    (f) not make, and not have made, expenditures from or use his  or  her
    29  personal  funds  or  property  or the personal funds or property jointly
    30  held with his or her spouse, or  unemancipated  children  in  connection
    31  with  his  or  her election to a covered office, but may make a contrib-
    32  ution to his or her authorized political committee  in  an  amount  that
    33  does  not  exceed  three times the applicable contribution limit from an
    34  individual contributor to non-participating candidates  for  the  office
    35  that he or she is seeking;
    36    (g) meet the threshold for eligibility set forth in subdivision two of
    37  this section;
    38    (h)  continue  to  abide  by all requirements during the post-election
    39  period;
    40    (i) not have accepted contributions in amounts exceeding the  contrib-
    41  ution  limits  set  forth for participating candidates in paragraph b of
    42  subdivision one of section 14-114 of this article  during  the  election
    43  cycle for which the candidate seeks certification;
    44    (i)  Provided  however,  that,  if  a candidate accepted contributions
    45  exceeding such limits before certification, such  acceptance  shall  not
    46  prevent the candidate from being certified by the board if the candidate
    47  immediately  pays  to the fund or returns to the contributor the portion
    48  of any contribution that exceeded the applicable contribution limit.
    49    (ii) If the candidate is  unable  to  return  such  funds  immediately
    50  because  they  have  already  been  spent,  acceptance  of contributions
    51  exceeding the limits shall not prevent the candidate from  being  certi-
    52  fied  by the board if the candidate submits an affidavit agreeing to pay
    53  to the fund from non-public funds all portions of any contributions that
    54  exceeded the  limit  no  later  than  thirty  days  before  the  general
    55  election.  If a candidate provides the board with such an affidavit, any
    56  disbursement of public funds to the candidate made under section  14-207

        A. 1674                             8
     1  of this title shall be reduced by no more than twenty-five percent until
     2  the total amount owed by the candidate is repaid.
     3    (iii)  Contributions received and expenditures made by the candidate's
     4  authorized political committee prior to the effective date of this title
     5  shall not constitute a violation of this title; and
     6    (j) comply with the rules governing judicial conduct  pursuant  to  22
     7  NYCRR Part 100 and the rules governing prosecutorial conduct pursuant to
     8  Rule  3.8  of  Part  1200, Rules of Professional Conduct of the New York
     9  State Unified Court System, as applicable.
    10    2. Threshold for eligibility. The threshold for eligibility for public
    11  funding for participating candidates shall be not less than ten thousand
    12  dollars in matchable contributions including at least one hundred match-
    13  able contributions comprised of sums between ten and two  hundred  fifty
    14  dollars  per  contributor,  from  residents of the district in which the
    15  office is to be filled.
    16    § 14-206. Limits on  public  financing.    In  any  general  election,
    17  receipt  of public funds by a participating candidate's authorized poli-
    18  tical committee shall not exceed the sum of one hundred  fifty  thousand
    19  dollars.
    20    § 14-207. Payment of public matching funds. 1. Determination of eligi-
    21  bility.  No  public  matching funds shall be paid to an authorized poli-
    22  tical committee unless  the  board  determines  that  the  participating
    23  candidate  has  met  the eligibility requirements of this title. Payment
    24  shall not exceed the  amounts  specified  in  subdivision  two  of  this
    25  section,  and  shall  be  made only in accordance with the provisions of
    26  this title. Such payment may be made only to  the  participating  candi-
    27  date's authorized political committee. No public matching funds shall be
    28  used  except as reimbursement or payment for qualified campaign expendi-
    29  tures actually and lawfully incurred or to repay loans used to pay qual-
    30  ified campaign expenditures.
    31    2. Calculation of payment. If the threshold for  eligibility  is  met,
    32  the  participating  candidate's  authorized  political  committee  shall
    33  receive payment for qualified campaign expenditures of  two  dollars  of
    34  public  matching  funds  for each one dollar of matchable contributions,
    35  for the first two hundred fifty dollars of eligible  private  funds  per
    36  contributor,  obtained  and reported to the board in accordance with the
    37  provisions of this title. The maximum payment of public  matching  funds
    38  shall  be  limited  to  the  amounts set forth in section 14-206 of this
    39  title for the covered election.
    40    3. Timing of payment. The board  shall  make  any  payment  of  public
    41  matching funds to participating candidate's authorized political commit-
    42  tees as soon as is practicable. But in all cases, it shall verify eligi-
    43  bility  for  public  matching funds within four business days, excluding
    44  weekends and holidays, of receiving a campaign contribution report filed
    45  in compliance with section 14-104 of this article. Within  two  business
    46  days  of  determining  that a candidate for a covered office is eligible
    47  for public matching funds, it shall authorize payment of the  applicable
    48  matching  funds  owed  to  the candidate. However, it shall not make any
    49  payments of public money earlier than the earliest dates for making such
    50  payments as provided by this title.   If  any  of  such  payments  would
    51  require  payment  on a weekend or federal holiday, payment shall be made
    52  on the next business day.
    53    4. Electronic funds transfer. The board shall,  in  consultation  with
    54  the office of the comptroller, promulgate rules to facilitate electronic
    55  funds  transfers directly from the campaign finance fund into an author-
    56  ized committee's bank account.

        A. 1674                             9
     1    § 14-208. Use of public matching funds;  qualified  campaign  expendi-
     2  tures.    1. Public matching funds provided under the provisions of this
     3  title may be used only by an authorized political committee for expendi-
     4  tures to  further  the  participating  candidate's  election,  including
     5  paying  for  debts  incurred within nine months prior to a nomination to
     6  further the participating candidate's election.
     7    2. Such public matching funds may not be used for:
     8    (a) an expenditure in violation of any law;
     9    (b) an expenditure in excess of the fair  market  value  of  services,
    10  materials, facilities or other things of value received in exchange;
    11    (c) an expenditure made after the candidate has been finally disquali-
    12  fied from the ballot and all judicial remedies have been exhausted;
    13    (d)  an  expenditure  made  after  the  only remaining opponent of the
    14  candidate has been finally disqualified from the general election ballot
    15  and all judicial remedies have been exhausted;
    16    (e) an expenditure made by cash payment;
    17    (f) a contribution or loan or  transfer  made  to  or  expenditure  to
    18  support  another candidate or political committee or party, committee or
    19  constituted committee;
    20    (g) an expenditure to support or oppose  a  candidate  for  an  office
    21  other than that which the participating candidate seeks;
    22    (h) gifts, except brochures, buttons, signs and other printed campaign
    23  material;
    24    (i) legal fees to defend against a criminal charge;
    25    (j)  payments  to immediate family members of the participating candi-
    26  date;
    27    (k) any expenditure made to challenge the validity of any petition  of
    28  designation  or nomination or any certificate of nomination, declination
    29  or substitution;
    30    (l) any impermissible personal use under section 14-130 of this  arti-
    31  cle; or
    32    (m)  any  use which would violate the rules governing judicial conduct
    33  pursuant to 22 NYCRR Part 100 or prosecutorial conduct pursuant to  Rule
    34  3.8  of  Part  1200, Rules of Professional Conduct of the New York State
    35  Unified Court System, as applicable.
    36    § 14-209. Powers and duties of the board.  1. Advisory  opinions.  The
    37  board  shall  render advisory opinions with respect to questions arising
    38  under this title upon the written request of a candidate, an officer  of
    39  a  political  committee  or member of the public, or upon its own initi-
    40  ative.  The board shall promulgate rules regarding reasonable  times  to
    41  respond  to  such requests. The board shall make public the questions of
    42  interpretation for which advisory opinions will  be  considered  by  the
    43  board and its advisory opinions, including by publication on its webpage
    44  with  identifying  information  redacted  as  the board determines to be
    45  appropriate.
    46    2. Public information and candidate education. The board shall develop
    47  a program for informing candidates and the public as to the purpose  and
    48  effect of the provisions of this title, including by means of a webpage.
    49  The board shall prepare in plain language and make available educational
    50  materials,  including  compliance manuals and summaries and explanations
    51  of the purposes and provisions of this title. The board shall prepare or
    52  have prepared and make available materials, including access to an elec-
    53  tronic recordkeeping and  filing  system,  to  facilitate  the  task  of
    54  compliance  with  the  disclosure and recordkeeping requirements of this
    55  title.

        A. 1674                            10
     1    3. Rules and regulations.  The  board  shall  have  the  authority  to
     2  promulgate such rules and regulations and provide such forms as it deems
     3  necessary for the administration of this title.
     4    4.  Database.  The  board  shall  develop  an  interactive, searchable
     5  computer database that shall contain all information necessary  for  the
     6  proper  administration  of  this title including information on contrib-
     7  utions to and expenditures by candidates and their authorized  political
     8  committee,  independent  expenditures in support or opposition of candi-
     9  dates for covered offices, and distributions of moneys  from  the  fund.
    10  Such  database  shall be accessible to the public on the board's webpage
    11  no later than June first, two thousand twenty-one.
    12    § 14-210. Audits and repayments.  1. Audits. The board shall audit and
    13  examine all matters relating to the proper administration of this  title
    14  and  shall  complete  such  audit  no  later  than  six months after the
    15  election in question.  Every candidate who receives public  funds  under
    16  this  title  shall be audited by the board. The cost of complying with a
    17  post-election audit shall be borne by the candidate's  authorized  poli-
    18  tical  committee using public funds, private funds or any combination of
    19  such funds.   The authorized  political  committee  of  a  participating
    20  candidate  must  maintain a reserve of three percent of the public funds
    21  received to comply with the post-election audit.    Any  public  reserve
    22  funds not used shall be remitted to the New York state judicial campaign
    23  finance  fund.  The  board  shall issue to each campaign audited a final
    24  audit report that details its findings.
    25    2. Repayments. (a) If the board determines that  any  portion  of  the
    26  payment  made  to  a candidate's authorized political committee from the
    27  fund was in excess of the aggregate amount of payments that such  candi-
    28  date  was  eligible  to  receive pursuant to this title, it shall notify
    29  such committee and such committee shall pay to the board an amount equal
    30  to the amount of excess payments. Provided, however, that if the errone-
    31  ous payment was the result of an error by the board, then the  erroneous
    32  payment  will  be  deducted  from  any future payment, if any, and if no
    33  payment is to be made then neither the candidate nor the committee shall
    34  be liable to repay the excess amount to the board.  The  candidate,  the
    35  treasurer and the candidate's authorized political committee are jointly
    36  and severally liable for any repayments to the board.
    37    (b)  If the board determines that any portion of the payment made to a
    38  candidate's authorized political committee from the fund  was  used  for
    39  purposes  other  than  qualified campaign expenditures and such expendi-
    40  tures were not approved by the board, it shall notify such committee  of
    41  the  amount so disqualified and such committee shall pay to the board an
    42  amount equal to such disqualified amount. The candidate,  the  treasurer
    43  and  the  candidate's  authorized  political  committee  are jointly and
    44  severally liable for any repayments to the board.
    45    (c) If the total of payments from the fund received by a participating
    46  candidate's authorized political committee  exceed  the  total  campaign
    47  expenditures  of  such  candidate's authorized political committee, such
    48  candidate's authorized political committee shall use such  excess  funds
    49  to reimburse the fund for payments received by such authorized political
    50  committee  from the fund during such calendar year. Participating candi-
    51  dates' authorized political committees shall pay to  the  board  unspent
    52  public  campaign funds from an election not later than twenty-seven days
    53  after all liabilities for the election have been paid and in any  event,
    54  not  later than the day on which the board issues its final audit report
    55  for  the  participating  candidate's  authorized  political   committee;
    56  provided,  however, that all unspent public campaign funds for a partic-

        A. 1674                            11
     1  ipating candidate shall be immediately due and payable to the board upon
     2  a determination by the board that the participant has delayed the  post-
     3  election audit. A participating candidate's authorized political commit-
     4  tee  may  make  post-election  expenditures  with  public funds only for
     5  routine activities involving nominal cost associated with winding  up  a
     6  campaign  and  responding  to the post-election audit.   Nothing in this
     7  title shall be construed to prevent a candidate or his or her authorized
     8  political committee from  using  campaign  contributions  received  from
     9  private contributors for otherwise lawful expenditures.
    10    3.  Rules and regulations.  The board shall promulgate regulations for
    11  the certification of the amount of funds  payable  by  the  comptroller,
    12  from  the fund established pursuant to section ninety-two-t of the state
    13  finance law, to a participating candidate's authorized political commit-
    14  tee that has qualified to receive such payment. These regulations  shall
    15  include  the  periods  during  which  such reports must be filed and the
    16  verification required, and  the  board  shall  develop  forms  on  which
    17  contributions  and  expenditures  are  to  be  reported. The board shall
    18  institute procedures which will make possible payment by the fund within
    19  four business days after receipt of the  required  forms  and  verifica-
    20  tions.
    21    §   14-211.   Enforcement  and  penalties  for  violations  and  other
    22  proceedings.  1. Civil penalties. Any person who, acting as or on behalf
    23  of a candidate  or  such  candidate's  authorized  political  committee,
    24  violates  any  provision  of this title, under circumstances evincing an
    25  intent to violate such provision, shall be subject to a civil penalty in
    26  an amount not in excess of ten thousand dollars, to be recoverable in  a
    27  special  proceeding or civil action to  be brought by the chief enforce-
    28  ment counsel pursuant to sections 3-104 and 3-104-a of this chapter.
    29    2. Criminal conduct. Any person who knowingly and willfully  furnishes
    30  or  submits  false  statements or information to the board in connection
    31  with its administration of this title, shall be guilty of a  misdemeanor
    32  in addition to any other penalty as may be imposed under this chapter or
    33  pursuant  to  any  other  law.  Any  referral for prosecution under this
    34  subdivision shall be made pursuant to section  3-104  of  this  chapter.
    35  Upon  conviction, the chief enforcement counsel shall initiate a special
    36  proceeding or civil action to recover any public matching funds obtained
    37  as a result of such criminal conduct.
    38    3. Proceedings as to public financing. (a) The determination of eligi-
    39  bility pursuant to this title and any  question  or  issue  relating  to
    40  payments  for  campaign  expenditures  pursuant  to  this  title  may be
    41  contested in a proceeding instituted in the Supreme court, Albany  coun-
    42  ty, by an aggrieved judicial candidate.
    43    (b)  A  proceeding with respect to such a determination of eligibility
    44  or payment for qualified campaign expenditures pursuant to this  chapter
    45  shall  be  instituted  within fourteen days after such determination was
    46  made. The board shall be made a party to any such proceeding.
    47    (c) Upon the board's failure to receive the amount due from a  partic-
    48  ipating  candidate  or  such  candidate's authorized political committee
    49  after the issuance of written notice of such amount due, as required  by
    50  this title, the chief enforcement counsel is authorized to seek recovery
    51  of such amount pursuant to sections 3-104 and 3-104-a of this chapter.
    52    (d)  Any  such funds obtained or collected through judgment or settle-
    53  ment shall be remitted to the  New  York  state  judicial  and  district
    54  attorney campaign finance fund.
    55    §  14-212.  Reports. The board shall review and evaluate the effect of
    56  this title upon the conduct of election campaigns and  shall  submit  an

        A. 1674                            12
     1  annual  report  to  the  governor  and  the legislature on or before May
     2  first, two thousand twenty-two, and on or before May first of every year
     3  thereafter, and at any other time upon the request of the  governor  and
     4  at  such other times as the board deems appropriate. These reports shall
     5  include:
     6    1. a list of the  participating  and  nonparticipating  candidates  in
     7  covered  elections  and  the  votes  received by each candidate in those
     8  elections;
     9    2. the amount of contributions and loans  received,  and  expenditures
    10  made, on behalf of these candidates;
    11    3.  the  amount  of public matching funds each participating candidate
    12  received, spent, and repaid pursuant to this title;
    13    4. analysis of the  effect  of  this  title  on  political  campaigns,
    14  including  its  effect  on the sources and amounts of private financing,
    15  the level of campaign expenditures, voter participation, the  number  of
    16  candidates,  the  candidates' ability to campaign effectively for public
    17  office, and the diversity of candidates seeking and elected  to  office;
    18  and
    19    5.  recommendations for amendments to this title, including changes in
    20  contribution limits, thresholds for eligibility, and any other  features
    21  of the system.
    22    §  14-213. Severability.   If any clause, sentence, subdivision, para-
    23  graph, section or part of this title be adjudged by any court of  compe-
    24  tent  jurisdiction to be invalid, such judgment shall not affect, impair
    25  or invalidate the remainder thereof, but shall be confined in its opera-
    26  tion to the clause, sentence, subdivision, paragraph,  section  or  part
    27  thereof  directly  involved  in  the  controversy in which such judgment
    28  shall have been rendered.
    29     Nothing in this title shall be construed  to  require  candidates  or
    30  candidates'  authorized  political  committees  to  commit any act which
    31  would violate the rules governing judicial conduct pursuant to 22  NYCRR
    32  Part  100. To the extent that any provision in this title conflicts with
    33  such rules, the rules shall control.
    34    § 6. The state finance law is amended by adding a new section 92-t  to
    35  read as follows:
    36    § 92-t. New York state judicial and district attorney campaign finance
    37  fund.  1.  There is hereby established in the joint custody of the state
    38  comptroller and the commissioner of taxation and finance a  fund  to  be
    39  known  as  the  New  York  state judicial and district attorney campaign
    40  finance fund.
    41    2. Such fund shall consist of all revenues received from the New  York
    42  state  judicial  and  district  attorney campaign finance fund check-off
    43  pursuant to subsection (h) of section six hundred fifty-eight of the tax
    44  law, from the abandoned property fund pursuant to section ninety-five of
    45  this article, from the general fund, and from all other moneys  credited
    46  or  transferred  thereto  from any other fund or source pursuant to law.
    47  Such fund shall also receive  contributions  from  private  individuals,
    48  organizations,  or other persons to fulfill the purposes of the judicial
    49  public financing system, as well  as  any  funds  remitted  pursuant  to
    50  section 14-211 of the election law.
    51    3. Moneys of the fund, following appropriation by the legislature, may
    52  be  expended  for the purposes of making payments to candidates pursuant
    53  to title two of article fourteen of the election law and for administra-
    54  tive expenses related to the implementation of article fourteen  of  the
    55  election  law.  Moneys  shall be paid out of the fund by the state comp-
    56  troller on  vouchers  certified  or  approved  by  the  state  board  of

        A. 1674                            13
     1  elections,   or  its  duly  designated  representative,  in  the  manner
     2  prescribed by law, not more than five business days after  such  voucher
     3  is received by the state comptroller.
     4    4.  Notwithstanding  any  provision of law to the contrary, if, in any
     5  state fiscal year, the state judicial  and  district  attorney  campaign
     6  finance  fund  lacks  the amount of money to pay all claims vouchered by
     7  eligible candidates and certified or approved  by  the  state  board  of
     8  elections,  any  such deficiency shall be paid by the state comptroller,
     9  from funds deposited in the general fund of the state not more than four
    10  business days after such voucher is received by the state comptroller.
    11    5. Commencing in two thousand twenty-two, if the surplus in  the  fund
    12  on  April  first of the year after a year in which a governor is elected
    13  exceeds twenty-five percent of the disbursements from the fund over  the
    14  previous  four years, the excess shall revert to the general fund of the
    15  state.
    16    6. No public funds shall be paid to any participating candidates in  a
    17  general  election any earlier than the last day to decline a judicial or
    18  district attorney nomination pursuant to subdivision  seven  of  section
    19  6-158 of the election law.
    20    7. No public funds shall be paid to the authorized political committee
    21  of  any participating candidate who has been disqualified or whose nomi-
    22  nation has been declared invalid by the appropriate board  of  elections
    23  or  a  court  of competent jurisdiction until and unless such finding is
    24  reversed by a higher court in a final judgment.   No  payment  from  the
    25  fund  in  the  possession  of  such participating candidate's authorized
    26  political committee on the date of such disqualification or invalidation
    27  may thereafter be expended for any purpose except the payment of liabil-
    28  ities incurred before such date.  All other such moneys shall be  repaid
    29  to the fund.
    30    §  7.  Section  95 of the state finance law is amended by adding a new
    31  subdivision 5 to read as follows:
    32    5. (a) As often as necessary, the co-chairs  of  the  state  board  of
    33  elections shall certify the amount such co-chairs have determined neces-
    34  sary  to  fund  estimated  payments from the fund established by section
    35  ninety-two-t of this article for the general election.
    36    (b) Notwithstanding any provision  of  this  section  authorizing  the
    37  transfer  of  any  moneys  in the abandoned property fund to the general
    38  fund, the comptroller, after receiving amounts  sufficient to pay claims
    39  against the abandoned property fund, shall, based upon  a  certification
    40  of the state board of elections pursuant to paragraph (a) of this subdi-
    41  vision, and at the direction of the director of the budget, transfer the
    42  requested  amount from remaining available monies in the abandoned prop-
    43  erty fund to the New York state judicial and district attorney  campaign
    44  finance fund established by section ninety-two-t of this article.
    45    §  8. Section 658 of the tax law is amended by adding a new subsection
    46  (h) to read as follows:
    47    (h) New York state judicial and  district  attorney  campaign  finance
    48  fund check-off. (1) For each taxable year beginning on and after January
    49  first, two thousand twenty, every resident taxpayer whose New York state
    50  income  tax liability for the taxable year for which the return is filed
    51  is forty dollars or more may designate on such return that forty dollars
    52  be paid into the New York state judicial and district attorney  campaign
    53  finance  fund  established  by section ninety-two-t of the state finance
    54  law. Where a husband and wife file a joint return and have  a  New  York
    55  state  income tax liability for the taxable year for which the return is
    56  filed is eighty dollars or more, or file separate returns  on  a  single

        A. 1674                            14
     1  form,  each  such taxpayer may make separate designations on such return
     2  of forty dollars to be  paid  into  the  New  York  state  judicial  and
     3  district attorney campaign finance fund.
     4    (2) The commissioner shall transfer to the New York state judicial and
     5  district attorney campaign finance fund, established pursuant to section
     6  ninety-two-t  of the state finance law, an amount equal to forty dollars
     7  multiplied by the number of designations.
     8    (3) For purposes of this subsection, the income tax  liability  of  an
     9  individual  for any taxable year is the amount of tax imposed under this
    10  article reduced by the sum of the  credits  (as  shown  in  his  or  her
    11  return) allowable under this article.
    12    (4)  The department shall include a place on every personal income tax
    13  return form to be filed by an individual for a tax year beginning on  or
    14  after  January first, two thousand twenty, for such taxpayer to make the
    15  designations described in paragraph one of this subsection. Such  return
    16  form shall contain a concise explanation of the purpose of such optional
    17  designations.
    18    § 9. Section 16-120 of the election law, as added by section 5 of part
    19  E of chapter 399 of the laws of 2011, is amended to read as follows:
    20    §  16-120.  Enforcement proceedings. 1. The supreme court or a justice
    21  thereof, in a proceeding instituted by the state board of elections, may
    22  impose a civil penalty, as provided for in subdivisions one and  two  of
    23  section 14-126 of this chapter and as provided for in subdivision one of
    24  section 14-211 of this chapter.
    25    2. Upon proof that a violation of article fourteen of this chapter, as
    26  provided in subdivision one of this section, has occurred, the court may
    27  impose  a civil penalty, pursuant to subdivisions one and two of section
    28  14-126 of this chapter and pursuant to subdivision one of section 14-211
    29  of this chapter, after considering, among other factors, the severity of
    30  the violation or violations, whether the subject of the violation made a
    31  good faith effort to correct the violation and whether  the  subject  of
    32  the  violation  has  a  history of similar violations. All such determi-
    33  nations shall be made on a fair and equitable basis  without  regard  to
    34  the status of the candidate or political committee.
    35    3.  The supreme court or a justice thereof, in a proceeding to recover
    36  public funds instituted pursuant to subdivision two of section 14-211 of
    37  this chapter, may order the recovery of such public funds.
    38    § 10. Severability. If any clause, sentence,  subdivision,  paragraph,
    39  section  or  part of title 2 of article 14 of the election law, as added
    40  by section five of this act be adjudged by any court of competent juris-
    41  diction to be invalid, such judgment shall not affect, impair or invali-
    42  date the remainder thereof, but shall be confined in  its  operation  to
    43  the  clause,  sentence,  subdivision, paragraph, section or part thereof
    44  directly involved in the controversy in which such judgment  shall  have
    45  been rendered.
    46    §  11.  This act shall take effect immediately; provided, however, all
    47  affected candidates will be eligible to participate in voluntary  public
    48  financing  beginning  with the 2021 election and provided, further, this
    49  act shall expire June 1, 2024 when upon such date the provisions of this
    50  act shall be deemed repealed.
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